1 October 23, 2024 QUARTERLY @2022 Stuart Bradie, President and CEO Mark Sopp, Executive VP and CFO Jamie DuBray, VP of Investor Relations FORWARD-LOOKING STATEMENTS The statements in this presentation that are not historical statements, including statements regarding our expectations for our future financial performance, effective tax rate, operating cash flows, contract revenues, award activity and backlog, program activity, our business strategy, business opportunities, interest expense, and our plans fo ...

[Q3 2024 Financial Results Overview](index=1&type=section&id=Q3%202024%20Financial%20Results%20Overview) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) The CEO highlighted exceptional Q3 results with year-over-year growth across all key financial metrics and raised full-year 2024 guidance following the LinQuest acquisition - KBR reported outstanding third-quarter results with year-over-year growth across all financial metrics: **Revenues**, **Adjusted EBITDA**, **Adjusted EPS**, and **Operating Cash Flows**[1](index=1&type=chunk) - The strategic acquisition of LinQuest, a leader in advanced engineering and data analytics, enhances KBR's capabilities in space, air dominance, and connected battle space missions[1](index=1&type=chunk) - Due to strong performance and the LinQuest acquisition, KBR is raising its full-year **2024 guidance** for **Revenue**, **Adjusted EBITDA**, and **Adjusted EPS**[1](index=1&type=chunk) [Business Highlights and New Awards](index=1&type=section&id=Business%20Highlights%20and%20New%20Awards) [Overall Bookings and Backlog](index=1&type=section&id=Overall%20Bookings%20and%20Backlog) KBR's total backlog reached **$22.1 billion** with strong QTD and TTM book-to-bill ratios of **1.2x** and **1.1x** respectively, driven by **$3.3 billion** in new bookings Backlog and Book-to-Bill Ratios (as of Sep 27, 2024) | Metric | Value | Period | | :--- | :--- | :--- | | Total Backlog and Options | $22.1 billion | As of Sep 27, 2024 | | New Bookings and Options | $3.3 billion | Q3 2024 | | Book-to-Bill Ratio | 1.2x | Quarter-to-Date (QTD) | | Book-to-Bill Ratio | 1.1x | Trailing-Twelve-Months (TTM) | [Sustainable Technology Solutions (STS)](index=1&type=section&id=Sustainable%20Technology%20Solutions%20(STS)) The STS segment achieved strong book-to-bill ratios and secured key contracts in LNG, sustainable aviation fuel, and blue ammonia, reinforcing its leadership in energy transition - Selected by Lake Charles LNG for a major transformation project including three liquefaction trains to export **16.45 metric tons per annum of LNG**[2](index=2&type=chunk) - Awarded contracts for sustainable technologies, including PureSAF℠ for sustainable aviation fuel, blue ammonia technology for Samsung and Shell, and ROSE® SDA technology for China's largest refinery[3](index=3&type=chunk) - Secured an advisory consulting contract with Kuwait Oil Company to develop a masterplan for producing **17GW of renewables** and **25GW of green hydrogen by 2050**[3](index=3&type=chunk) [Government Solutions (GS)](index=2&type=section&id=Government%20Solutions%20(GS)) The GS segment achieved strong book-to-bill ratios, securing significant contracts with the U.S. military and Australia, while the LinQuest acquisition added new orders - Awarded multiple high-value contracts with the U.S. military, including a **$199M** contract with the Naval Information Warfare Center, a **$153M** recompete for Naval Test Wings, and a **$230M** recompete with the U.S. Air Force[4](index=4&type=chunk) - Selected to deliver technical design services to support Australia's sovereign nuclear-powered submarines facilities and infrastructure program[4](index=4&type=chunk) - The recently acquired LinQuest secured over **$60 million** in new orders via the SBIR Phase III contract vehicle, a new vehicle for KBR[5](index=5&type=chunk) [Sustainability and ESG Achievements](index=3&type=section&id=Sustainability%20and%20ESG%20Achievements) KBR achieved top ESG ratings from MSCI and EcoVadis, with **37%** of 2023 revenues from sustainability projects, demonstrating strong environmental commitment - Received a top **AAA rating** from MSCI ESG Ratings for the second consecutive year, placing it among industry leaders in managing ESG risks[6](index=6&type=chunk) - Earned a **Gold Rating** from EcoVadis, placing KBR in the top **5%** of assessed companies for business sustainability[6](index=6&type=chunk) - In **2023**, **37%** of KBR's revenues were derived from sustainability-focused projects[6](index=6&type=chunk) [Financial Performance](index=3&type=section&id=Financial%20Performance) [Q3 2024 Financial Summary](index=3&type=section&id=Q3%202024%20Financial%20Summary) KBR reported strong Q3 2024 results with **10%** revenue growth to **$1.9 billion**, **18%** Adjusted EBITDA growth to **$219 million**, and robust operating cash flow of **$161 million** Q3 2024 Financial Performance (YoY) | Metric | Q3 2024 (Millions) | Q3 2023 (Millions) | Change | | :--- | :--- | :--- | :--- | | Revenues | $1,947M | $1,770M | +10% | | Net Income (to KBR) | $100M | ($21M) | N/A | | Adjusted EBITDA | $219M | $186M | +18% | | Adjusted EBITDA Margin | 11.2% | 10.5% | +70 bps | | Diluted EPS | $0.75 | ($0.16) | N/A | | Adjusted EPS | $0.84 | $0.75 | +12% | | Operating Cash Flows | $161M | ($40M) | +$201M | - Revenue growth was driven by on-contract growth across all Government Solutions business units, the acquisition of LinQuest, and growing demand in Sustainable Technology Solutions[9](index=9&type=chunk) - Operating cash flow increased significantly to **$161 million**, up from a **$40 million** outflow in Q3 2023, primarily due to strong collections and the absence of a **$132 million** prior-year legal settlement payment[10](index=10&type=chunk) [Year-to-Date (Nine Months) 2024 Financial Summary](index=3&type=section&id=Year-to-Date%20(Nine%20Months)%202024%20Financial%20Summary) For the first nine months of 2024, KBR's revenue grew **8%** to **$5.6 billion**, Adjusted EBITDA rose **15%** to **$642 million**, and operating cash flow reached **$422 million** YTD 2024 Financial Performance (YoY) | Metric | YTD 2024 (Millions) | YTD 2023 (Millions) | Change | | :--- | :--- | :--- | :--- | | Revenues | $5,620M | $5,226M | +8% | | Net Income (to KBR) | $299M | ($286M) | N/A | | Adjusted EBITDA | $642M | $559M | +15% | | Adjusted EBITDA Margin | 11.4% | 10.7% | +70 bps | | Diluted EPS | $2.22 | ($2.10) | N/A | | Adjusted EPS | $2.44 | $2.18 | +12% | | Operating Cash Flows | $422M | $248M | +$174M | - YTD revenue growth was driven by Sustainable Technology Solutions and growth across International, Defense & Intel, and Science & Space within Government Solutions, partially offset by a decline in Ukraine-related activity[12](index=12&type=chunk) [Capital Allocation](index=4&type=section&id=Capital%20Allocation) KBR returned **$29 million** to shareholders in Q3 2024 and **$226 million** year-to-date through share repurchases and dividends Capital Returned to Shareholders (in millions) | Period | Share Repurchases (Millions) | Dividends (Millions) | Total Returned (Millions) | | :--- | :--- | :--- | :--- | | Q3 2024 | $9 | $20 | $29 | | YTD 2024 | $167 | $59 | $226 | [Segment Financials](index=8&type=section&id=Segment%20Financials) Government Solutions remained the primary revenue driver at **$1.49 billion** in Q3 2024, while Sustainable Technology Solutions also showed growth with **$457 million** in revenue Segment Revenue and Operating Income (Q3 2024 vs Q3 2023, in millions) | Segment | Q3 2024 Revenue (Millions) | Q3 2023 Revenue (Millions) | Q3 2024 Operating Income (Millions) | Q3 2023 Operating Income (Millions) | | :--- | :--- | :--- | :--- | :--- | | Government Solutions | $1,490 | $1,345 | $123 | $108 | | Sustainable Technology Solutions | $457 | $425 | $95 | $84 | [Financial Position and Cash Flow](index=9&type=section&id=Financial%20Position%20and%20Cash%20Flow) KBR's total assets increased to **$6.78 billion** due to the LinQuest acquisition, with long-term debt rising to **$2.56 billion**, and operating cash flow reaching **$422 million** YTD - Total assets increased to **$6.78 billion** from **$5.57 billion** at year-end 2023, with Goodwill increasing from **$2.11 billion** to **$2.55 billion**, reflecting the LinQuest acquisition[23](index=23&type=chunk) - Long-term debt increased to **$2.56 billion** from **$1.80 billion** at year-end 2023, primarily to fund acquisition activities[23](index=23&type=chunk) - Net cash provided by operating activities for the nine months ended Sep 27, 2024 was **$422 million**, a significant improvement from **$248 million** in the prior year period[24](index=24&type=chunk) [Fiscal 2024 Guidance](index=5&type=section&id=Fiscal%202024%20Guidance) [Updated Full-Year Outlook](index=5&type=section&id=Updated%20Full-Year%20Outlook) KBR raised its full-year 2024 guidance for Revenue to **$7.5 billion - $7.7 billion** and Adjusted EPS to **$3.20 - $3.30**, reflecting strong performance and the LinQuest acquisition Updated Fiscal 2024 Guidance | Metric | Updated Guidance | Prior Guidance | | :--- | :--- | :--- | | Revenue | $7.5B - $7.7B | $7.4B - $7.7B | | Adjusted EBITDA | $840M - $870M | $825M - $850M | | Adjusted EPS | $3.20 - $3.30 | $3.15 - $3.30 | | Operating cash flows | $460M - $480M | $460M - $480M | [Appendix: Non-GAAP Reconciliations](index=13&type=section&id=Appendix%3A%20Non-GAAP%20Reconciliations) [Reconciliation of Net Income to Adjusted EBITDA](index=13&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA) This section reconciles GAAP Net Income to non-GAAP Adjusted EBITDA, showing how Q3 2024 Net Income of **$100 million** was adjusted to **$219 million** Adjusted EBITDA Reconciliation of Net Income to Adjusted EBITDA (Q3 & YTD, in millions) | Line Item | Q3 2024 (Millions) | Q3 2023 (Millions) | YTD 2024 (Millions) | YTD 2023 (Millions) | | :--- | :--- | :--- | :--- | :--- | | Net income (loss) attributable to KBR | $100 | ($21) | $299 | ($286) | | Adjustments (Interest, Taxes, D&A, etc.) | $112 | $199 | $329 | $500 | | **EBITDA** | **$212** | **$178** | **$628** | **$215** | | Other Adjustments (Acquisition, Legal, etc.) | $7 | $8 | $14 | $344 | | **Adjusted EBITDA** | **$219** | **$186** | **$642** | **$559** | [Reconciliation of Diluted EPS to Adjusted EPS](index=14&type=section&id=Reconciliation%20of%20Diluted%20EPS%20to%20Adjusted%20EPS) This section reconciles GAAP Diluted EPS to non-GAAP Adjusted EPS, illustrating how Q3 2024 Diluted EPS of **$0.75** was adjusted to **$0.84** Adjusted EPS Reconciliation of Diluted EPS to Adjusted EPS (Q3 & YTD) | Line Item | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | :--- | :--- | | Diluted EPS | $0.75 | ($0.16) | $2.22 | ($2.10) | | Adjustments | $0.09 | $0.91 | $0.22 | $4.28 | | **Adjusted EPS** | **$0.84** | **$0.75** | **$2.44** | **$2.18** | [Reconciliation of Operating Cash Flow to Adjusted Free Cash Flow](index=15&type=section&id=Reconciliation%20of%20Operating%20Cash%20Flow%20to%20Adjusted%20Free%20Cash%20Flow) This section reconciles GAAP operating cash flow to Adjusted free cash flow, showing how Q3 2024 operating cash flow of **$161 million** resulted in **$142 million** Adjusted free cash flow Reconciliation to Adjusted Free Cash Flow (Q3 & YTD, in millions) | Line Item | Q3 2024 (Millions) | Q3 2023 (Millions) | YTD 2024 (Millions) | YTD 2023 (Millions) | | :--- | :--- | :--- | :--- | :--- | | Cash flows from operating activities | $161 | ($40) | $422 | $248 | | Add: Legacy legal settlement (after tax) | — | $132 | — | $132 | | **Adjusted operating cash flows** | **$161** | **$92** | **$422** | **$380** | | Less: Capital expenditures | ($19) | ($22) | ($54) | ($60) | | **Adjusted free cash flows** | **$142** | **$70** | **$368** | **$320** |

Outstanding 3Q PerformanceStrong Bookings MomentumRaising Guidance on Revenue, Adj. EBITDA2 & Adj. EPS2HOUSTON, Oct. 23, 2024 /PRNewswire/ -- KBR, Inc. (NYSE: KBR) today announced its third quarter fiscal 2024 financial results."KBR's exceptional team has once again exceeded expectations with outstanding third-quarter results," stated Stuart Bradie, KBR's President and CEO. "Our team's dedication to our customers has resulted in year-over-year growth across all financial metrics, including Revenues, Adjuste ...

HOUSTON, Oct. 22, 2024 /PRNewswire/ -- KBR (NYSE: KBR) announced today the release of its 2023 Sustainability and Corporate Responsibility Report, which detailed continued sustainability progress across its operations and through its delivery of sustainability-focused solutions."A large part of our culture at KBR is 'walking the talk' and this includes our commitment to sustainability. This report is a testament to the commitment of our people to doing things that matter — delivering solutions that are help ...

Investors often opt for the stock-picking approach that involves stocks with a low price-to-earnings (P/E) ratio. This strategy is based on the notion that the lower the P/E ratio is, the higher the stock value. The reasoning behind this is straightforward — when a stock's current market price does not adequately reflect its higher earnings, it suggests potential for growth.But there is more to this whole P/E story. Because not only low P/E, stocks with a rising P/E can also fetch strong returns. In this re ...

KBR, Inc. (KBR) is slated to report its third-quarter 2024 results on Oct. 23, 2024, before market open. In the last reported quarter, its adjusted earnings beat the Zacks Consensus Estimate by 5.1% but revenues missed the same by 1.6%. On a year-over-year basis, the top and bottom lines grew 6% and 12%, respectively. The company's earnings surpassed the consensus estimate in each of the trailing four quarters, the average surprise being 4.8%. Find the latest EPS estimates and surprises on Zacks Earnings Ca ...

KBR, Inc. (KBR) has landed a significant contract to provide engineering and procurement services for the onshore portion of Shell's Manatee gas field project. This marks another milestone in KBR’s extensive track record in the liquefied natural gas (LNG) sector and strengthens its position in the global energy transition.Expanding LNG ExpertiseThe Manatee project, located in the East Coast Marine Area of Trinidad and Tobago, is an important asset for supporting global energy security. The natural gas extra ...

Have you been paying attention to shares of KBR Inc. (KBR) ? Shares have been on the move with the stock up 12.4% over the past month. The stock hit a new 52-week high of $69.59 in the previous session. KBR Inc. has gained 25.4% since the start of the year compared to the 23.1% move for the Zacks Construction sector and the 31.1% return for the Zacks Engineering - R and D Services industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our ...

HOUSTON, Oct. 14, 2024 /PRNewswire/ -- KBR (NYSE: KBR) announced today it has been awarded an engineering and procurement services contract for the Beachfield Manatee upgrade, the onshore portion of the Manatee gas field project.Under the terms of the contract, KBR will provide engineering and procurement services for Shell's Manatee project located in the East Coast Marine Area of Trinidad and Tobago. The Manatee gas field supports global energy security and natural gas production, providing gas for the co ...

Core Viewpoint - KBR Inc. has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings potential, which is expected to drive stock price increases [1][2]. Earnings Outlook - The Zacks Consensus Estimate projects KBR to earn $3.25 per share for the fiscal year ending December 2024, reflecting a year-over-year increase of 11.7% [5]. - Over the past three months, analysts have raised their earnings estimates for KBR, with a 1% increase in the Zacks Consensus Estimate [5]. Zacks Rating System - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with stock price movements, making it a valuable tool for investors [3][4]. - KBR's upgrade to Zacks Rank 1 places it in the top 5% of stocks covered by Zacks, indicating superior earnings estimate revisions and potential for market-beating returns [6][7].